The Delaware Department of Insurance (“Department”) has recently issued Forms and Rates Bulletin No. 41, regarding the charging of fees beyond the policy premiums by property and casualty carriers. The key highlights are as follows:
- A carrier’s operating expenses are required to be included as part of the filed rates and incorporated into the policy premium.
- Carriers should not add fees to policies other than those charged for installments, late payments, or invalid or rejected payment methods.
- Installment fees may not vary based on the method of payment.
- Policy, inspection, issuance, administrative, etc. fees are not allowed.
- Fees for services that are provided in addition to the policy terms, that are optional and elected by the insured, may be charged for that service separate from the policy.
- All fees charged by a carrier must be actuarially justified.
Please note that Forms and Rates Bulletin No. 41 became effective upon issuance on July 23, 2025, and all Property and Casualty Carriers must be in compliance by January 2026.
For any questions related to the above referenced bulletin in Delaware, please contact Westmont Associates!